Thai households feel the pinch as 77% dip into savings or borrow for daily expenses. Buy-now-pay-later use surges among middle earners, while travel and fashion are axed. Yet spending continues and half expect their finances to improve again by 2027.
Thai consumers are raiding savings, borrowing and turning to deferred payments as six years of economic weakness squeeze household finances. A new Milieu Thailand survey found 77% recently needed savings or borrowing to cover expenses, while 71% expect to become even more cautious. Yet consumers are refusing to shut their wallets. More than half are spending more, while 69% still make room for personal rewards. Price now dominates purchasing decisions as families protect groceries and utilities while cutting travel and fashion. Despite the squeeze, half expect their finances to improve by 2027.
Thai consumers are tightening their belts as prolonged economic weakness continues to squeeze household finances. Low economic growth has beset Thailand for roughly six years. Consumer credit has also remained scarce, adding pressure on households. Yet a new Milieu Thailand survey shows consumers remain resilient and continue spending.
Instead of shutting their wallets, consumers are becoming much more selective. Price, necessity and value increasingly determine where their money goes. Notably, 66% said they were becoming more cautious about spending. That compares with 56% during 2025, marking a ten-percentage-point increase within one year.
Looking ahead, 71% expect to become even more cautious during the coming months. However, the change does not amount to a broad spending retreat. Some 51% actually spent more than during the previous three months. Rather, consumers are examining individual purchases more carefully and demanding greater value for money.
Inflation, current account deficits and political instability add pressure as consumers turn cautious
The economic backdrop remains difficult. Inflation is a key factor, particularly as higher oil prices feed into household costs. Presently, Middle East tensions between the United States and Iran are exacerbating those prices. In turn, higher energy costs threaten the purchasing power of already stretched consumers.
On another front, Thailand’s export and tourism performance has shifted towards current account deficits. Both developments are likely to affect the baht’s purchasing power. Even so, the Thai currency has recovered approximately 3% during recent weeks. Weakness in United States financial markets has helped drive that rebound.
Political instability adds another source of uncertainty. The government presently commands a strong majority in parliament. Nevertheless, the ruling Bhumjaithai Party faces an array of corruption scandals. Such political instability often makes Thai consumers jittery and dents confidence.
Against this backdrop, Milieu’s research shows households changing their financial behaviour. The company’s main 2026 consumer study was conducted in April. Yuwadee Iamsontisap, Vice President of Commercial at Milieu Thailand, outlined the findings. She said consumers were entering a new era of more cautious spending.
Price and value dominate household choices as 77% turn to savings or borrowing to cover expenses
Specifically, 55% remained uncertain about their financial position during the following three months. At the same time, more than half reported higher recent expenditure. The figures show caution rising even while consumer spending continues. Increasingly, households are deciding which purchases deserve priority and which can wait.
Price now dominates those calculations. Some 75% identified price as the most important factor when making purchasing decisions. Moreover, “value for money” became the primary consideration across almost every product category. Milieu described consumers as increasingly careful rather than simply unwilling to spend.
“Consumers are still spending, but every purchase is being considered more carefully than before.”
In parallel, purchasing continues its rapid shift towards digital channels. Some 82% of consumers choose online channels for spending. Cashless payments are also firmly established, with 78% reporting their use. Meanwhile, health and personal care remain categories where consumers hesitate to cut costs.
A July follow-up study exposed considerably greater financial strain beneath this continuing expenditure. Some 77% had used savings or borrowing during the previous three months. The money was required to meet expenses. By comparison, only 23% managed without additional financial assistance.
Emergency savings, deferred payments and credit cards increasingly cover ordinary household expenses
The breakdown shows how consumers are filling the gaps. Among those requiring extra funds, 34% withdrew money from emergency savings. Crucially, these reserves were being spent on ordinary necessities. Food, groceries, transportation and personal items were among the expenses covered.
As a result, emergency savings are supporting daily expenditure for many respondents. Other consumers are turning to deferred payments and credit. Some 29% used buy-now-pay-later services during the period. Separately, 26% relied on credit cards to help cover expenditure.
Family networks also provide another source of money. Some 15% borrowed directly from relatives or friends. In addition, 11% turned to loan applications. Taken together, consumers are using several funding sources to keep daily spending moving.
One finding stands out across income groups. Buy-now-pay-later use is not concentrated among Thailand’s lowest earners. Only 14% earning below ฿10,000 monthly reported using these services. By contrast, usage was considerably higher among middle and higher-income consumers.
Buy-now-pay-later use reaches 48% among middle earners as households protect essential spending
Among respondents earning ฿30,000 to ฿39,999 monthly, the proportion reached 48%. Almost half within that income bracket therefore used buy-now-pay-later arrangements. According to Milieu, the pattern reflects growing demand for flexible payment channels. These methods help consumers manage living expenses and maintain existing lifestyles.
At the household level, financial pressure is producing another notable behaviour. Some 59% admitted concealing purchases or their actual cost from partners or family members. Of those surveyed, 8% said they did this regularly. Money matters are consequently becoming more private within many households.
Despite tighter finances, consumers have not abandoned spending on personal enjoyment. Some 69% had considered life’s uncertainty before deciding to spend money immediately. Even with major luxury purchases postponed, many still leave room for smaller rewards. Thus, belt-tightening remains selective rather than uniform across household budgets.
Essential spending sits firmly at the top of those budgets. Some 61% identified grocery shopping as a leading priority. Utilities followed closely, with 58% identifying them as a major expenditure priority. Conversely, discretionary categories are among the first targets when households need savings.
Travel and fashion face early cuts as digital payments, savings and credit reshape household budgets
Travel is particularly exposed. Some 23% reported cutting travel expenditure when budgets became tight. Fashion followed, with 18% reducing spending in that category. Health and personal care products, however, remain comparatively resistant to household cutbacks.
The pattern shows consumers ranking expenditure by immediate importance. Groceries and utilities remain protected, while travel and fashion face earlier reductions. Smaller personal pleasures also remain part of household budgets. In effect, consumers are trimming selected spending instead of imposing cuts across every category.
Payment behaviour is changing alongside those priorities. Digital purchasing dominates, while cashless transactions are widespread. At the same time, deferred payments are reaching consumers across income levels. Credit cards, savings and loan applications provide additional sources of spending power.
The July figures put that financial adjustment into sharper focus. More than three-quarters needed savings or borrowing to meet expenses. Among those seeking extra funds, over one-third tapped emergency reserves. Nearly three in ten used buy-now-pay-later services, while more than one-quarter relied on credit cards.
Households lean on family, savings and loans as financial caution rises while consumers keep spending
Beyond formal credit, households are also leaning on personal relationships. Some 15% borrowed from family members or friends. Another 11% used loan applications. Accordingly, daily expenditure is increasingly being financed through a mixture of accumulated savings and borrowing.
The April survey had already signalled growing caution. At that stage, 66% reported becoming more careful with spending. A year earlier, the figure had been 56%. Furthermore, 71% expected to tighten their financial behaviour further during subsequent months.
Three months later, the follow-up study showed how households were financing expenditure under those conditions. Some 77% reported drawing on savings or borrowing. Only 23% had avoided needing additional financial assistance. The contrast provides a sharper picture of the pressure facing consumers.
Yet spending has continued. Some 51% said they spent more than during the previous three months. Meanwhile, 69% continued considering immediate personal enjoyment when deciding whether to make purchases. Large luxury purchases may be postponed, but smaller rewards remain.
Half expect finances to improve by 2027 despite widespread borrowing and cuts to discretionary buying
Importantly, optimism about 2027 has also survived the present squeeze. Half of respondents believe their financial circumstances will improve by then. Only 22% expect their financial position to deteriorate. Those expecting improvement therefore substantially outnumber those anticipating worsening finances.
For now, however, caution dominates household decision-making. Three-quarters identify price as the leading factor when choosing products. Value for money has become central across almost every category. Accordingly, each purchase faces greater scrutiny before consumers commit their money.
The underlying numbers are stark. Some 77% recently required savings or borrowing to cover expenses. Emergency reserves are paying for food, groceries, transport and personal items. Credit cards and deferred payments are also helping households meet spending requirements.
At the same time, consumers are cutting discretionary expenditure before essentials. Travel and fashion are losing spending, while groceries and utilities remain priorities. Health and personal care products also remain difficult to cut. Small personal rewards continue alongside those essential purchases.
Thai consumers tighten belts, protect essentials and keep spending as financial pressures persist
Thailand’s consumers are therefore tightening their belts without abandoning consumption. Instead, they are becoming more calculating about price, value and necessity. Increasingly, they are also using savings, credit and deferred payments to keep spending moving.
Still, the survey records substantial confidence that conditions can improve. Half expect stronger personal finances by 2027, against 22% expecting deterioration. Until then, households are stretching their resources, protecting essentials and cutting where they can.
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Something gone wrong in the business world as confidence plummets to a three year low in survey
The defining shift is towards caution rather than a complete retreat from spending. Thai consumers remain active, but every purchase faces greater scrutiny. As Milieu put it, “Consumers are still spending, but every purchase is being considered more carefully than before.”
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